Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Identify Market Segments of National Stock Exchange:

Options:

Primary Market and Secondary Market

Money Market and Capital Market

Whole Sale Debt Market and Capital Market

Short Term Debt Market and Long Term Debt Market

Correct Answer:

Whole Sale Debt Market and Capital Market

Explanation:

The correct answer is Option (3) → Whole Sale Debt Market and Capital Market.

The National Stock Exchange is the latest, most modern and technology driven exchange. It was incorporated in 1992 and was recognised as a stock exchange in April 1993. It started operations in 1994, with trading on the wholesale debt market segment. Subsequently, it launched the capital market segment in November 1994 as a trading platform for equities and the futures and options segment in June 2000 for various derivative instruments. NSE has set up a nationwide fully automated screen based trading system.

Whole Sale Debt Market Segment: This segment provides a trading platform for a wide range of fixed income securities that include central government securities, treasury bills, state development loans, bonds issued by public sector undertakings, floating rate bonds, zero coupon bonds, index bonds, commercial paper, certificate of deposit, corporate debentures and mutual funds.

Capital Market Segment: The capital market segment of NSE provides an efficient and transparent platform for trading in equity, preference, debentures, exchange traded funds as well as retail Government securities.